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Mortgage Amortization Interest Questions and Answers

Open Question: Help with math wtf? Finshed chart now don't know?

Mortgage amortization Tables Payment number Monthly Payment Amount $Interest Portion (I=Prt)Principal Portion $ Principal Remaining $ Opening balance __________________________________112,450 11160.371097.3862.99112387.01 21160.371096.7663.61112323.40 31160.371096.1464.23112259.17 Questions how much of your 11160.37 monthly goes towards paying interest in the first 3 months? how much of the $1160.37 goes towards paying off the prinicple in the first 3 months? ober 25 years, how much will you be paying out in total (total disbursement)? How much interest will the bank have changed you over the 25 years? more

Voting Question: Say.. you're buying a $250,000 house in Virginia right now?

What are the estimated expenses/money (with allowance) you need to pay or have? 1. Lawyer fees? 2. Down payment - With 10K down payment? How much is mortgage a month (based on what annual interest rate? lowest-highest) - Without down payment? How much is mortgage a month (based on what annual interest rate? lowest-highest) 3. Loan Amount Annual interest rate 4. Amortization schedule yearly Number of years: 1-30 5. Property taxes 6. Hazard insurance 7. Private mortgage insurance 8. Personal savings for at least 2-3 months house mortgage Is it true it's a good time to buy a house right now? more

Voting Question: Hi Guys, Refinance the house, but couldn't (penalty is huge) please help and advise...?

Hi Guys, Hope someone could answer my question. I got my mortage last year in January(08). The interest rate I got (at that time the best) was 5.9% fixed for 5 years. Now, with the low interest rates, I am also thinking whether I could refinance my mortgage. However, the issue is the bank where I have a mortgage quoted the penalty as $20,000 if I change my product. I still have 4 years to go. Currently, I am paying about $1850 each month. I calculated and with the current interest rate (3.05%), I would be saving about 300-400 buck each month with the same amortization(biweekly/29 years). My balance is 3,07,000 and penalty is 20,000. The house is worth about 3,37,000(per 2009 assessment). I talked to my bank and they are not willing to refinance. Now, I am stuck for another 5 years, and looks like even if I want I couldn't get benefitted from the lower interest rates. Am I screwed, or is there still a light at the end of the tunnel? Very frustrated!!! By the way, I am living in Vancouver, Canada. more

Resolved Question: Given a 30 yr mortgage, if you pay the monthly difference based on a 20 yr amortization would you pay the same?

I am trying to decide whether to take a 30 year or 20 year mortgage. The rates are the same at 4 3/4%. I am trying to figure if take the 30 year mortgage and pay extra principle each month equal to the difference between the 30 year and 20 year monthly payments, would the 30 year mortgage amortize the same over 20 years as the 20 year amortized mortgage? Is there more interest up front in a 30 year? Would I pay the exact same amount of money over 20 years? more

Resolved Question: How prevalent is the practice of adding prepayments to the back of amortization schedule among mtg servicers?

I'd like to know what percentage of mortgage servicers add the extra principal payments to the back of amortization schedule. One of the money managers on our trading floor said that banks MAY adjust amortization schedule once a year if a formal request is made. Are millions of poor souls who prepay their morgages, just giving interest-free loans to banks???? P.S. I'm not looking for a technical answer, I passed the "Theory of Interest" actuarial exam. The Mortgage Professor emailed me that only a very small percentage of banks add prepayments to the back of amortization table. I hope his right. I'll put my bank's accounting to the test as soon as I prepay my HELOC. As it stands now, my conventional loan's amortization schedule is off by 4 cents after 2 years. more

Voting Question: MORTGAGE HELP!!! ASAP!?

You take out an amortized loan of $100,000 at 7.5% (annual rate, compounded monthly) and make monthly payments of $850. Here's the top of an amortization schedule: Payment NumberInterestPrincipalBalance 0 0 0 $100,000 1 a. Fill in the first row of the schedule. b. Fill in the second row of the schedule. c. Fill in the third row of the schedule. d. What's the outstanding balance after the 124th payment? e. How many payments will it take to pay the loan off? Include the last payment which is smaller than the rest. f. Approximately how much total interest will you have paid when the loan is finally paid off? more

Resolved Question: why is the obama administration considering setting up a national bank to hold bad debts while handing out..?

why should obama even consider a plan that the federal government, which has already given over HUNDREDS OF BILLIONS of our dollars to banks with bad loans (and who now have their hands out for another TWO TRILLION) open a "national bank" to buy up such bad loans and then sell them in time to the public sector, without expecting that these private banks and bankers WORK to refinance the bad loans into good loans? you must ask yourself this: "what is the business of a bank?" and the answer is only this: the business of a bank is to make money. that is the ONLY business of a bank. and so, if the obama administration is considering using our tax dollars that are non existent anyway to establish a national bank that will buy up bad loans, how would that benefit you and i? why is no rule put upon the banks that want more and more and more of our money to bail them out of the financial crisis that they themselves put themselves into requiring that they, themselves, who are in the sole business of making money, to require that they restructure their own lousy loans so that such loans become profitable to them rather than putting their fat hands out to collect even more money from not only you and i, but from our progeny? why should we even consider allowing the federal government to set up and run a bank that will absorb bad loans? would it be profitable to we, the people? as far as i can see, practically anything that the federal government puts its inept nose into fails and/or makes our lives more complicated by more and more federal regulations, which in turn create jobs within the federal government itself, but do nothing to benefit the working man? will a national bank that buys up bad loans benefit the people of america? why would it? take a look at the article linked here: http://tpmcafe.talkingpointsmemo.com/2009/01/24/the_banks_have_stolen_enough_its_time_to_take_them/ and then, please give me your PERSONAL opinion, as a citizen of this country, as to why you would want the federal government to open up an institution whose sole purpose is to make money, i.e., a national bank? would you deposit your wages (if any) into such a federal national bank? why would you do that? what reward would you get for doing so? do you think that the interest that the federal government MIGHT pay you would be worth your deposits, just like the deposits that you make to the federal government out of your paycheck in the form of taxes that are supposed to pay for those things that you need which you cannot pay for yourself (such as war)? don't you think that rather than our federal government building up its "national bank" that the lenders that made bad loans out of their greed, so that they could continue paying themselves millions in salary and bonuses and perks and stock options while being seated each day in plush offices with views from huge windows that you'd just love to be able to have yourself from your house (condo), should have to put their loan officers to WORK at making those bad loans into profitable, good loans? it's so simple. we give $0.00 to the banks. they already took our money with no requirement that they account for how they spent it. so now they say it is not enough. okay, if it is not enough, why don't they figure out how they can make money off of their loans? if that is the business of a bank--making money--and it is, the only business at that, why don't they figure out yet more creative ways to shut down this foreclosure disaster and change it to profitable business for them? this is what they do with their bad mortgage loans: they rewrite them into fixed rate, (very) long term mortgages. they fix the rate of interest at only one point above the prime rate, as it is today. and then they stretch out the amortization schedule of repayment to 100 years or more than 100 years in order that the payments are profitable to them. and they charge "points" (a point is one percent of the face value of a loan) to refinance these bad loans, but they put these points into the loan itself. and of course, they charge their outrageous fees, but they put those fees into the loan also. in fact, they could structure the new mortgages so that their points and fees are what is paid first. if you own real estate, you should call up your real estate broker so that s/he will print out an amortization schedule for you so that you can see how much of what you pay per month goes towards interest on your principal balance. this way you will understand what i am proposing. ("amort" is a french word that means "to kill," to kill off the principal). okay, if you do not agree with the above work that the banks should do, which will keep their employees employed and paying taxes to the government (about $0.61 out of every dollar that they spend, all taxes over the year combined), then what do you propose that the banks do? do you propose that they had been omitted: ...), then what do you propose that the banks do? do you propose that they should go bankrupt? how and why? or, do you think that this new idea of forming a "national bank" that will be funded on OUR money will resolve the problems that the banks face? if such a national bank were established, would the banks still have their hands open to catch yet another two trillion of our dollars? what will they do with that money anyway? what will we, the people of our country, have to pay to fund the establishment of this national bank that obama has proposed? i like detailed answers with something that backs them up. even if i do not agree with you, i never give a thumbs down if you back up your argument, so feel free to exercise your constitutional right of free speech in your answer. and thank you. ha ha! the first person that attempted an "answer" gave a non answer--that's a first! the first person that answered was "reallypablo," who is a Top Contributor. read his "answer." you will laugh. more

Resolved Question: How does mortgage prepayment affect future amortization? I'd like a spreadsheet?

I'm about halfway through a 15-year, fixed-rate mortgage. I have an amortization schedule from when the loan was originated. I would like to see how irregular prepayments to principal affect the amortization going forward. About $200 of my monthly payment goes to interest right now, and declines slightly by month. If I pay down the principal by, say, 5 thousand, how much of my future payments will then get divided between principal and interest? A spreadsheet would be great, if anyone has one. more

Resolved Question: Can anyone provide macroeconomics homework help?

You are considering buying a property of $450,000. The property has a building on it which is worth $130,000, and the rest of the price represents the value of the land. The nominal interest rate is 5.4, and everyone expects no inflation for the foreseeable future. Assume that the building depreciates at the rate of 4% per year, and the land depreciates at the rate of 1% per year. Your utilities will cost $300 per month, and insurance is $1400 per year. Taxes are levied at the rate 2.9% on the entire value of your property. You have saved up $45,000 that you can use as a down payment. Mortgage lenders require that your total annual housing costs (including mortgage interest*, maintenance costs, taxes, insurance, and utilities) do not exceed 40% of your after-tax income. Calculate the annual after-tax income you need in order to be able to afford this property. *Note: In similar calculations, mortgage lenders usually use the entire mortgage payment (which includes amortization of the principal) instead of just the interest cost to gauge how much you can afford to borrow. For simplicity, we use the first year interest cost here, because the complete mortgage calculation is too difficult to do by hand. I don't necessarily need the answer, I was just working on this problem thinking I was heading in the right direction, and I ended up getting the answer wrong so now I'm clueless. Any help will be appreciated. more

Resolved Question: Mortgage loans and Amortization payments...Someone told me this...what do you think?

This guy who bought and sold real estate told me this...mortgage payments are numbered 1-360, right (on 30yr note)? Amortization table looks like this, for example: interest principle payment 1 = $800 $200 payment 2 - $799 $201 payment 3 = $798 $202 and so on... He said you make an interest and principle payment every month. BUT, if you make payment 1, plus make a separate payment for "payment 2" of only the principle and state on your check that it is for payment 2 principle, which is $201, it will nullify the $799 interest, and your next payment will be payment 3. Is this true? Says banks don't want you to know this, cause they lose a lot of money in interest, which is true. Anyone know? more

Resolved Question: Is the interest in a mortgage payment for last month or next month?

I'm in the process of refinancing and I have a question about the breakdown of the typical mortgage payment. The amount required to payoff the old loan does not match the amortization schedule. I made my last payment on February 1st. I did not make the March 1st payment because the closing is set for March 3rd. They are telling me that I need to pay the interest for the month of February. Please explain. more

Resolved Question: mathematics help me !!!!!!!!!!!!!!!!!!!!!!!!!!!?

1. Secured debt usually has a higher interest rate than unsecured debt. (1 point) True False 2. If you pay your credit cards on-time and maintain a low balance, your credit score will go up. (1 point) True False 3. Which of the following is NOT an example of Real Property: (1 point) an oak tree on your property a barn on your property a well on your property a tractor on your property 4. Banks use collateral as a means to secure a loan. Why do they do that? (1 point) So at least they can collect the principal if you default. That way they lower their risk and can offer a lower interest rate on a bigger loan. If they charged the same rates as unsecured credit cards nobody could afford a home. All of the above 5. Your residence should not cost more than what percentage of your net income? (1 point) 15% 25% 28% 32% 6. If you default on a loan, the bank will ______ your car and auction it. (1 point) collateralize liquidate refinance repossess 7. What would be the collateral in a secured mortgage loan? (1 point) credit score automobile house depreciation 8. A homeowner is required to have a designated minimum of insurance if they have a home loan. (1 point) True False 9. Without secured debt the average American household income could afford an average priced home. (1 point) True False 10. Your secured debt payment amounts and due dates can be shown with a/an: (1 point) pay stub credit report amortization table amortization schedule more

Resolved Question: Can someone offer reasonable mortgage Help/advice?

I bought a home 3 years ago using the 0 down program that doesn't exist anymore...anyway, I've come to the end of my originally arranged 3 year term on a 25 yr amortization with a company called xceed here in Ontario. Three years ago xceed did their own mortgage insurance but now are no longer allowed so I need to refinance using Genworth or CMHC or AIG but none of them will approve me. So what's happened is my mortgage is currently on hold while the mortgage broker is frantically attempting to find me a mortgage somehow without killing me with a unrealistic interest rate...but it doesn't seem to be happening. My credit is good and I have never ever missed a mortgage payment...I'm just in limbo right now. Has anyone else had this problem? What did you do? Does anyone know of any other avenues I can take? This crunch is killing me and I do not want to lose my home! p.s I have 83% ltv right now. more

Resolved Question: Who "invented" amortization & do you think it will ever be changed?

Given the housing crisis, I have been wondering about this lately...and also why banks amortize mortgages so that you basically pay 3x your home's value (even with low interest rates). Where did this idea ever start? I guess I am wondering why mortgages are amortized but credit cards have simple interest too - from both finance and policy perspectives. I think, financially, the bank has to amortize to be profitable...but why...if credit cards are profitable with simple interest? more

Resolved Question: If you require a 9 percent return on your investments, which would you prefer? ?

If you require a 9 percent return on your investments, which would you prefer? A.) $5,000 today B.) $15,000 five years from now C.) $1,000 per year for 15 yrs 2. The Mutual Assurance and Life Company is offering an insurance policy under either of the following two terms: A. Make a series of 12 payments of $1,200 at the beginning of each of the next 12 years (the first payment being made today) B. Make a single lump-sum payment today of $10,000 and receive coverage for the next 12 years If you had investment opportunities offering an 8 % annual return, which alternative would you prefer? 3. You decide to purchase a building for $30,000 by paying $5,000 down and assuming a mortgage of $25k. The bank offers you a 15-year mortgage requiring annual end-of-year payments of $3188 each. The bank also requires you to pay a 3percent loan origination fee, which will reduce the effective amount the bank lends to you. Compute the annual percentage rate of interest on this loan? 4. Construct a loan amortization schedule for a 3-year, 11 percent loan of $30k. The loan requires three equal, end-of-year payments. 5. ira investments develops retirement programs for individuals. you are 30 years old and plan to retire on your 60th birthday. You want to establish a plan with IRA that will require a series of equal, annual, end-of-year deposits into the retirement acct. The first deposit will be made 1 year from today on your 31st birthday. The final payment on the acct will be made on your 60th birthday. The retirement plan will allow you to withdraw $120k per year for 15 years with the first withdrawal on your 61st birthday. Also at the end of the 15 year you wish to withdraw an additional $250k. The retirement account promise to earn 12% annually. What periodic payments must be made into the account to achieve your retirement objective? 6. Crab State Bank has offered you a $1,000,000 5-year loan at an interest rate of 11.25 percent, requiring equal annual end-of-year payments that include both principle and interest on the unpaid balance. Develop an amortization schedule for this loan. 7. using an online mortgage calculator (see http://moyer.swlearning.com) solve for the monthly savings and the number of months it takes to recoup the refinancing costs in problem 34. Hint under the question â€œwhat will it cost you?â€ enter 2850 for â€œOtherâ€ and 0 for all other items Problem 34 (the Humphreys have 20 years remaining on their home mortgage loan. the loan balance is $125,000. the interest rate on the loan is 6.25 percent per year and their current monthly payment is $913.66. The Humphreys have been wondering if they should consider refinancing their mortgage loan as interest rates have fallen. After calling some banks Mrs. Humphreys found that she could get a loan for $125, 000mwith a maturity of 20 years at a rate if 5.1 percent per year. The refinancing will require that the Humphreys pay closing costs of $2,850. If the monthly savings in payments can be invested at 6 percent per year, would you recommend that the Humphreys refinance their home? Assume monthly compounding in solving this problem) 8. Use an online savings or retirement calculator (see http://moyer.swlearning.com) to solve the following problem: You are now 30 years old and would like to accumulate $2,000,000 in your retirement account at the age of 65. You currently have $50,000 saved in the retirement account. How much must you set aside at the end of each year over the next 35 years to attain your retirement goal if the account earns 6.5 percent per year? How much would you have to set aside each year if you currently have a zero balance in the retirement account? 9. Using one of the mortgage loan calculators available on the internet (see http://moyer.swlearning.com do a loan amortization for a $150,000, 30-year mortgage loan at a rate of 5 percent and answer the following questions? a.How much is the monthly payment? b.How much of the first payment (i.e., year 1, month 1) goes towards the interest? How much towards principal reduction? c.How much of the 180 payment (i.e., year 15, month 12) goes towards interest? How much towards principal reduction? d.What is the remaining balance on the loan at the end of the fifth year? more

Resolved Question: MORTGAGE - REGARDING PREPAYING PRINCIPAL ON 30 YEAR FIXED LOAN?

If I have a $300,000, 5% fixed rate, 30 year mortgage, $1,650/ mth and pay an additional $500/mth specifically to be applied to principal, is the mortgage company's amortization table recalculated every month? In effect, is the monthly interest expense lowered not simply because interest expense lowers each month in a fixed loan, but also because of the monthly $500 payments designated to principal? My mortgage broker indicated that although my principal will be reduced with prepayments, my monthly interest and principal ratios won't vary from the original amoritization schedule since prepayments will be applied on the back end of the loan (i.e. 360th installment payment) versus on the front end of the loan (i.e 1st payment)? Is this correct? Also, are their effective ways to "self audit" my mortgage payments to ensure they are being applied correctly? Thank you. more

Voting Question: 30 YEAR FIXED RATE MORTGAGE PAYMENTS - PREPAYING PRINCIPAL AND IT'S IMPACT ON AMORTIZATION SCHEDULE?

If I have a $300,000, 5% fixed rate, 30 year mortgage, $1,650/ mth and pay an additional $500/mth specifically to be applied to principal, is the mortgage company's amortization table recalculated every month? In effect, is the monthly interest expense lowered not simply because interest expense lowers each month in a fixed loan, but also because of the monthly $500 payments designated to principal? My mortgage broker indicated that although my principal will be reduced with prepayments, my monthly interest and principal ratios won't vary from the original amortization schedule since prepayments will be applied on the back end of the loan (i.e. 360th installment payment) versus on the front end of the loan (i.e 1st payment)? Is this correct? Also, are their effective ways to "self audit" my mortgage payments to ensure they are being applied correctly? Thank you. more

Resolved Question: I need help on this economics essay!!?

This is what the essay calls for: research paper explaining the various concepts of mortgages, amortization, principle, interest, accelerated payments, and equity. Include detailed explanationss of the difference between fifteen and thirty year fixed loans, Adjustable Rate Mortgages (ARMs), Private Mortgage Insurance (PMI), home insurance and property taxes. I have no clue what to write!! I'm all confused. COuld you guys give me some tips on what to write or any websites I should use that'll help me? I need all the help I could get!!! more

Resolved Question: I`ve mortgage with Merix financial & my interest rate is 5 variable. Should i lock in coz of economic crisis?

Also, would i be able to change my amortization from 35 yrs to 25 yrs? more

Resolved Question: How do home mortgages work?

I'm a renter just out of college, and looking for the first time into what it would take to buy a house. What is amortization? Is there an equation to determine how much of your monthly payment goes toward interest and how much toward principle? What is an interest-only loan and why would someone want to get it? Why does the homebuyer have to insure 20% of the mortgage privately? more

Resolved Question: Question about how mortgage prepayment affects amortization schedule.?

So I'm buying my first house, its an FHA loan, and the biggest thing on my mind is figuring out how to pay as little interest as possible over the years. I'm buying a less expensive house that I could afford, so that I can have money left over to prepay on the principal as often as possible, and get the house paid off much quicker than 30 years. ( I know alot of people probably think, its my first house, I'm going to move soon, upgrade, etc, but I doubt it. I rarely move, I've been in the same 5 mile radius my whole life, I plan to be in this house for a long time) Right now I've already got my minimum down payment/closing costs. I've also got enough money for an emergency fund. Then on top of that I've got around $4K extra that I can apply to the principal. Now since I'm not completely familiar with how the whole amortization schedule works, I'm wondering which way I'd be better off. A) Just applying that extra directly to my down payment up front, which will lower my monthly payment by about $20 a month, but will still be amortized at 30 years (as far as I know). B) Just putting down the minimum down payment, and then in about a month applying that $4K to the principle. That way the loan has already been amortized, and (if my thinking is right), I'll be getting a jump start through the amortization schedule, so that on all my future payments, more of the payment will be going straight to principal and less towards interest. And in effect taking a year or so off the end of the loan. (that's how i think it works, although I don't fully understand how the ammortization works, so that's why I'm asking the question) So with overall interest savings throughout the years in mind, which is a better option, or are they both going to pretty much be the same? more

Resolved Question: Is it possible to figure out a complete amortization table with this information?

Someone has a 30-year home mortgage. In one year (not necessarily the first year) they paid 11,748.25 in interest only. In the following year, they paid $4,098.94 in principal and $11,549.53 in interest. Last year they paid $11,341 in interest. This year, what will the principal and interest payment be, and what is the interest rate? more

Resolved Question: Should I refinance my 30 year 6% loan into a 15 year 4.875% loan?

I have a 30 year fixed at 6% on a prinicpal of 275,000. Monthly payment is $1,648.76 for principal & interest. I've paid down a lot of principal in the 2.5 years I've had it, and owe about $170,000. My current payment puts $717.00 to principal, $931.00 to interest, and then we pay an extra $352.00 per month on principal (for a total monthly payment of $2,000). So the total payment going towards principal is $1,069.00 per month (and climbing). I was thinking about refinancing into a 15 year fixed at 4.875% through my same mortgage company and the closing costs and 1.25 points is $4,749.00 It would lower my payment to $1,333 per month, a savings of $315.00 per month. We were planning to keep our monthly payment of $2,000 the same, so there would be a larger difference of $667.00 per month going towards additional principal. Looking at the amortization schedule, the loan would start out with $642.41 going towards pricincipal, plus the additional $667 towards principal, for a total of $1,309, with only $691.33 going towards interest. At this rate, my loan would be paid off in 9 years. If our payment is reduced by $315 per month and the cost to refi is $4,749, we would break even in 15 months. If my math is correct, as long as we stay in our house for at least another 15 months, it makes sense to refi, correct? more

Resolved Question: I have a mortgage of 150k with Merix. I am planning to ask for another 15k fto buy a car. Is this advisable?

should i be careful of anything? my current interest rate for my condo is 3.8%. Will i get the same interest rate this time? Will the amortization period remain the same? more

Voting Question: is it worth it to do amortization?

I could lower my monthly mortgage payment to $200 by putting a lump sum of $20,000 in. The interest rate i have right now is 5.85%.. So is it like putting that $20,000 in a bank account over 27 years (which is the length of my mortgage payment) at a interest rate of 5.85%? Put don't i get help from the government, which pays some of the interest rate in your taxes? HELP, i don't know what to do? more

Voting Question: Question on Mortgage Amortization?

Hi, we are getting a mortgage shortly. I am 50, my wife 60yrs old. We are putting 50% down in cash. Can someone please give us an idea what would be the best terms to take for that mortgage? We were considering a 1 yr term, but I'm not sure. Years ago we had a variable rate and it was a very smart decision, maybe another variable rate, given the interest rate environment? Also, do they still have 40 yr. amortizations in Canada? I think they do for someone like us putting 50% down don't they? It is only for high ratio mortgages that they don't allow the 40 years any more? Thanks folks for your input! more

Resolved Question: Mortgage Commitment â€“ is this Reasonable or Completely Wrong?

Hi All, I wanted to ask whether the following mortgage commitment I received from a small bank is reasonable or completely wrong(?) The mortgage commitment includes the following statement: "the loan balance upon maturity (5 years), with ALL INTEREST, charges and accessories, shall become due and payable on that dateâ€¦. the mortgage will become due and payable in 60 months at which time the borrower, if all payments are made on the due date and any prepayment privilege is not used, will owe $155,000" (I rounded). However, the loan amount (principal) is only $120,000! My question is is this normal that after 5 years the bank has calculated I will owe $155,000?? I understand how they calculated it â€“ they added the present value of all future interest payments (30 years) to the amount I will owe. However, is this standard meaning most banks do it this way or is it completely wrong to the extent I should not take their loan? What happens after 5 years if I want to continue with a different bank?? Lastly, in another section in the contract they mentioned" the mortgage is not renewable (after 5 years) on the same terms as described above (referring to interest and amortization). Therefore, on one hand if I take their mortgage it will never make sense to switch to a different bank after the 5 years term due to a HUGE penalty - will owe $155K where initial loan is only $120K. On the other hand if I stay with them they can now (after 5 years) charge any interest they want as they mentioned above. I guess the bottom line is if this is a common/standard practice and most banks do it this way I will take the mortgage however if this is completely wrong/unreasonable I will not. Is it even LEGAL for a bank to charge future interest (25 years interest) at the end of a term (5 years)? Don't they have to follow certain rules/regulations too? I would appreciate any advice on the topic. THANKS & REGARDS, Neil PS. it's a variable rate mortgage and the monthly payments include interest and principal more

Resolved Question: Can I offer owner financing on my house if I still have a large mortgage on it?

I need to sell my house and owe $200K. I found a buyer who is willing to put down $10K and pay me $235K for the house with monthly payments of $1,650. I need help figuring out interest rate, amortization, etc. This will cover my current mortgage, taxes and insurance. What is the best way to write this contract up? Does a title company do it as well as an attorney? Will there be closing costs - which ones? I guess I have to carry the morgage for 30 years unless they can refinance earlier (they have poor credit due to medical bills now). At this point, I am just glad to not have to pay the monthly payments and have one less property to take care of. I am just not sure how to make this all legal and fair to me and the buyer. more

Resolved Question: Java Mortgage calculator help.?

Can someone help me flesh out the details of this? I need to make a mortgage calculator in java does the following The user will be asked to enter to the amount of the mortgage loan, the term in years of the mortgage, and an annual interest rate. The amount of the mortgage loan shall be greater than 0 and not exceed 10,000,000 dollars. The minimum term for the loan is five years, with a maximum of 30 years. In addition to the user being able to supply the mortgage information the application will display three of the most commonly used mortgages and the user shall be able to select these mortgages instead of supplying the mortgage information. Once the user has provided the mortgage information, the program shall calculate the monthly mortgage payment and the amortization table for the life of the mortgage. For each month the amortization table shall display the loan period, loan balance, principal balance, interest balance, principal paid and interest paid. Here is mortgage payment formula. PMT = (PV x IR) / (1 - (1 + IR)^-NP) Where: PMT = Monthly Payment PV = Principle Value (amount of loan) IR = Interest Rate, by month NP = Note Period, or mortgage term in months IR = apr/100/12 NP = term * 12 if Apr > 0 AND APR <= 100 then PMT = (Principal * IR)/(1-(1 + IR)-np) else if Apr = 0 PMT = Principal/NP end if I need help I am not so good with Java. As long as i get the calculator part of this done i think i can handle the rest. more

Resolved Question: How do I use an amortization calculator?!?

Okay, I have an assignment due TOMORROW in English using an amortization calculator and I have absolutely no clue what to do.. He gave us the website of the calculator to use (http://www.bretwhissel.net/cgi-bin/amortize) and he said that we have to come with a minimum of 15 years interest rate and then we have to write a page paper on what we did.. I'm so lost! All I need to know is what to enter in what field.. Like i'm pretty much doing a mortgage because a car won't be enough.. Help please! more

Resolved Question: Can anybody explain to me how mortgages really work?

I went to some mortgage calculator website and put those numbers. Loan amount: $100,000 Interest rate: 5.20 % Amortization: 25 Monthly mortgage payment will be: $593.04 Yearly: $7116.48 What really confused me was when I calculated the total payment after 25 years. 7116.48 X 25 = $177,912 The question is, how come only %5.20 interest rate will end up paying about 77K over the original 100k price of the property? Or is it how things work out for mortgages? Sorry I'm from 3rd world countries and kinda don't get things right over there. more

Resolved Question: Simple C++ program, not compiling, I'm having trouble?

Please bear with me. I am a first year CS student and I know the mistakes I've probably made are silly. // Mortgage Calculator #include <iostream> #include <string> #include <iomanip> #include <cmath> using namespace std; int main() {// User input cout << "Welcome to Eric's Mortgage Calculator!"<< endl; string name; cout << "First,what is your name?" << endl; getline(cin,name); string address; cout << "Your address?" << endl; cin >> address; string city; cout << "Your city?" << endl; cin >> city; string state; cout << "Also, your state?" << endl; cin >> state; string zip; cout << "And your zip code?" << endl; cin >> zip; cout << "Okay, now you're house..." << endl; string cost; cout << showpoint << fixed << setprecision(2); cout << "What is the cost of your home?" << endl; cin >> cost; string downPayment; cout << "And how much is the downpayment?" << endl; cin >> dp; string ir; cout << "What is the interest rate of your loan? (Please enter with decimal =))" << endl; cin >> ir; string yrs; cout << "How many years is the loan for?" << endl; cin >> yrs; //Calculations and assignments float num = cost * (ir * (1 + ir)); float num2 = pow(num, 12); float den = (1 + ir); float den2 = pow(den, 12); float den3 = (den2 - 1); float monthlyPayment = (num2 / den3); //Output //Their info cout << endl; cout << endl; cout << "Your information:" << endl; cout << left ; cout << "Name:" << name << endl; cout << "Address:" << address << endl; cout << "City:" << city << endl; cout << "State and Zip:" << state << "," << zip << endl; // Their calculations cout << endl; cout << endl; cout << "And here are your calculations," << name << endl; cout << "Cost:" << cost << endl; cout << "Down Payment:" << downPayment << endl; cout << "Interest rate:" << ir << endl; cout << "Life of loan:" << yrs << endl; cout << "Approximate Mortgage Payment:" << monthlyPayment << endl; I know I'm not declaring the variables right. I think I should be using char or string for some. I also think my syntax for the formula is messed up. Heeeellpp! By the way this is a program that calculates the monthly payment of a mortgage using the amortization formula. more

Resolved Question: Why do mortgage companies let the borrower pay more for the interest and less for the principal?

I was looking at my amortization schedule and I see that most of my monthly payment goes toward the interest right now, why is that? more

Resolved Question: How much interest/principal have I paid?

Mortgage 105000.00 at nine percent interest. I paid 850.00 per month for 6 months, or 5100.00. I was told that it was all interest...not 1 cent came off the principal balance. Is that correct? I don't have an amortization schedule. more

Resolved Question: Why do you have to pay so much interest up front on a mortgage?

I understand how a mortgage interest and principle is determined by an amortization formula. My question is How is it legal for a lender to be able to do this? Is it a law? or has it just become "the way it is". Thanks for you answers. more

Resolved Question: How much do I give to the bank if I sell my house today at the same price I bought if for 2 years ago.

Since in the beginning of the mortgage I pay interest only payments, the amount I owe to the bank as principal interest is virtually the same after 2 years ... I have started to get haunted by the amortization table. I would definably be at a loss if I pay them the principal after all the costs incurred more

Resolved Question: I have a 15-yr mortgage for $175,000 at an interest rate of 5.25%. I have a checking account with $33,000...?

I have a checking account with $33,000 which earns 5.1% APR interest. Is there any reason why I should put the money toward the house? Would I save a lot of money in the long run by doing that? I don't get how amortization works. Would it be better if i paid down the mortgage? I do like having a lot of money liquidated and making interest. But is this a bad decision?? Oh and who asked about which bank... well its a credit union of course :P https://www.rivermarkcu.org/ more

Resolved Question: How to determain car loan interest?

I can track my mortgage payments from an amortization schedule and see exactly how much I need to pay each month in order to get it paid on in x amount of time (I put this together on an excel spreadsheet). I want to do this with my car loan, but each month the interest is a different rate. One month I see that 36% of my payment went to interest, the next month its 28%, the next month its 31%. Seems to me the best plan would be to send in extra payments during the months that the interest is the lowest so that more goes towards the principal - but how in the world am I supposed to know when they will take more or less interest? Can I ask them to just give me a fixed rate each month? more

Resolved Question: Loan amortization help?

Do a loan amortization for $150,000, 30-year mortgage loan at a rate of 5 percent and answer the following questions: a. How much is the monthly payment? b. How much of the first payment (i.e., year 1, month 1) goes towards interest? How much toward principal reduction? c. How much of the 180th payment (i.e. year 15, month 12) goes toward interest? How much toward the principal reduction? d. What is the remaining balance on the loan at the end of the 5th year? more

Resolved Question: Urgent, Finance Morgage Question please help!!!?

You acquire a home and as a result are carrying a mortgage of $350,000 with a 25-year amortization period. You initially sign on for a 5-year fixed rate mortgage at 6.25% with payments made monthly. 4 years from today, you decide to refinance your mortgage at a 5.50% (without penalty) and also increase your payment frequency from monthly to weekly. (Assume your mortgage payments are made at the end of each month or week and the interest rate on mortgages are compounded semi-annually). (a) What is your monthly mortgage payment in year 1? (b) What is the outstanding balance (principal) on the mortgage after 4 years? (c) What will be your weekly payment on the refinanced mortgage? (There are 52 weeks in a year.) (d) Are you paying more or less on a monthly basis once you refinance your mortgage if your discount rate is 8%, compounded annually? (Assume that there 4.3333 weeks per month) more

Resolved Question: Would you consolidate your debt into this loan?

If your interest rate was about 1% higher than your current mortgage, but the loan has a debt repayment plan that gets you out of debt 10 years sooner and save you over $100k in total interest? Plus, you save about $200/month in debt payment and you can apply some of it toward the principal and invest the rest. I just don't get why some people would say no. Maybe its because it sounds too good to be true and they don't believe it, even though everything is printed out and a loan amortization schedule is given. Oh well, some people are just ignorant to information or they have really been brainwashed that interest rate overrides all other important data. more

Resolved Question: Finance question, exam coming soon, please help!?

You acquire a house and as a result are carrying a mortgage of $350,000 with a 25-year amortization period. You initially sign on for a 5-year fixed rate mortgage at 6.25% with payments made monthly. 4 years from today, you decide to refinance your mortgage at a 5.50% (without penalty) and also increase your payment frequency from monthly to weekly. (Assume your mortgage payments are made at the end of each month or week and the interest rate on mortgages are compounded semi-annually). (a) What is your monthly mortgage payment in year 1? (b) What is the outstanding balance (principal) on the mortgage after 4 years? (c) What will be your weekly payment on the refinanced mortgage? (There are 52 weeks in a year.) Please explain this question in easy word, step by step!!! (Solution not necessary). ONLY SERIOUS ANSWER PLEASE more

Resolved Question: Problem with Finance question? Need Help!?

You acquire a Condo and as a result are carrying a mortgage of $350,000 with a 25-year amortization period. You initially sign on for a 5-year fixed rate mortgage at 6.25% with payments made monthly. 4 years from today, you decide to refinance your mortgage at a 5.50% (without penalty) and also increase your payment frequency from monthly to weekly. (Assume your mortgage payments are made at the end of each month or week and the interest rate on mortgages are compounded semi-annually). (a) What is your monthly mortgage payment in year 1? (b) What is the outstanding balance (principal) on the mortgage after 4 years? (c) What will be your weekly payment on the refinanced mortgage? (There are 52 weeks in a year.) more

Resolved Question: Finance question help!!!?

You acquire a condo and as a result are carrying a mortgage of $350,000 with a 25-year amortization period. You initially sign on for a 5-year fixed rate mortgage at 6.25% with payments made monthly. 4 years from today, you decide to refinance your mortgage at a 5.50% (without penalty) and also increase your payment frequency from monthly to weekly. (Assume your mortgage payments are made at the end of each month or week and the interest rate on mortgages are compounded semi-annually). (a) What is your monthly mortgage payment in year 1? (b) What is the outstanding balance (principal) on the mortgage after 4 years? (c) What will be your weekly payment on the refinanced mortgage? (There are 52 weeks in a year.) more

Resolved Question: If I make double principal payments on my mortgage should it take more than one month off the end of the loan?

I just started my payments in Dec of '07, and have been making double and triple principal payments every month. I've been keeping track with the online amortization schedule which updates after each payment. The extra payments only seem to be taking one month of the end of the loan. I always heard that paying extra take "months" off your loan which makes since to me... less principal = less interest over the life of the loan = months of savings. Can someone explain it to me in more detail...Thanks. It's a 20 year loan, there is no early repayment penalty, and I'm 100% sure the extra payments are going to principal. more

Resolved Question: math homework interest compound questions with interest.....10 points?

a) Jose has a mortgage at 9.5% compounded semi-annually, amortized over 25 years. if Jose decides to change his mortgage payments from 1000 a month to $500 every 2 weeks, what will be the effect on his amortization period? b) Jeremiah has a long term savings plan. For 10 years he has been investing $150 a month, earning 4.25% interest compounded monthly. how much more would he have saved if he had chosen to make deposits of $200 a month? more

Resolved Question: finance questions with interest.....10 points?

Resolved Question: Compound interest......math help 10 points?

Resolved Question: Compound interest...again ...plz help...10 points?

Voting Question: Accounting????

Instructions Designate the best answer for each of the following questions. Use the following data for questions 1 and 2 below: Carlo Company bought real estate, on which there was an old office building, for $900,000. They paid $90,000 in cash as a down payment and signed a 6% mortgage for the remainder. They immediately had the old building razed at a net cost of $30,000, the salvaged materials were sold for $4,200. Attorneys were paid $7,000 in connection with the land purchase and an additional $3,000 in connection with permits and zoning variances necessary for Carlo's new office building. $25,000 was paid for excavation for the basement of the new building. $2,100,000 was paid for construction of the new building, and $95,000 was paid for a parking lot and necessary walkways and driveways. _____3.Martin Textile purchased machinery for $50,000 eight years ago. It was expected to have a useful life of ten years, no salvage value, and was depreciated using the straight-line method. At the end of its eighth year of use it was retired from service and given to a junk dealer. The entry to record the retirement includes a a.debit to Loss on Disposal for $10,000. b.debit to Machinery for $50,000. c.debit to Depreciation Expense for $10,000. d.credit to Accumulated Depreciationâ€”Machinery for $40,000. _____ 4.Which of the following should not be included in the plant assets (property, plant, and equipment) classification? a.Land on which warehouse sits b.Building housing corporate headquarters c.Parking lot used by visitors d.Land held for investment. _____5.Salvage value is deducted for the initial computation of depreciation expense in all of the following methods with the exception of a.straight-line. b.units-of-activity. c.declining-balance. d.All of the above include a deduction of salvage value. _____6.The cost of a patent should be amortized over a.40 years. b.the shorter of its legal life or its useful life. c.the longer of its legal life or its useful life. d.its useful life. ____8.Which of the following is not an intangible asset? a.Research and development costs b.Copyrights c.Organization costs d.Goodwill _____11.Stome Corp. issued $300,000 of 5%, 5-year bonds at 102 on January 1, 2006. The straight-line method of amortization is used and the bonds pay interest annually on January 1. The amount of bond interest expense that Stome should report on its 2006 income statement is a.$16,200. b.$13,800. c.$15,000. d.$14,400. ____12.Front Corporation issues its bonds at a discount. Amortization of the discount will a.decrease bond interest expense. b.increase bond interest expense. c.decrease the carrying value of the bonds on the balance sheet. d.be reported as a loss on the income statement. ____13. Failure to record a liability will probably a.result in a overstated net income. b.result in overstated total liabilities and ownerâ€™s equity. c.have no effect on net income. d.result in overstated total assets. ____15. Gunder Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $18,900. If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes? a.$900 b.$945 c.$45 d.It cannot be determined. ____17. The Muffin Company issued a five-year interest-bearing note payable for $50,000 on January 1, 2005. Each January the company is required to pay $10,000 on the note. How will this note be reported on the December 31, 2006, balance sheet? a.Long-term Debt, $50,000 b.Long-term Debt, $40,000 c.Long-term Debt, $30,000; Long-term Debt due within one year, $10,000 d.Long-term Debt of $40,000; Long-term Debt due within one year, $10,000 more

Mortgage Amortization Interest News

mortgage amortization interest

Atrios is concerned that there will be a second wave of foreclosures when the next wave of option ARMs reset: Option ARM rates are going to be recasting soon and in increasing numbers. Thatâ€™s the magic moment when people can no longer make minimum ...

Mortgage Resets: One Shoe Dropping - Seekingalpha.com

JACKSON, Miss. , May 6 -- EastGroup Properties, Inc. (NYSE: EGP) today announced the closing of a $67 million limited recourse mortgage loan discussed in the first quarter earnings press release. The note has a fixed interest rate of 7.5%, 20-year ...

EastGroup Properties Announces Closing of $67 Million Loan - Earthtimes

A bill pending in the House would crack down on certain mortgage lending practices, many of which consumer groups blame for the housing crisis and resulting economic slowdown. The bill also seeks to encourage lenders to make traditional loans â€” and ...

House tries mortgage lending reform again - Politico.com

MILL VALLEY, Calif. , May 5 /PRNewswire-FirstCall/ -- Redwood Trust, Inc. RWT today reported a net loss for the first quarter of 2009 of $35 million , or $0.65 per share. This compares to a net loss of $116 million , or $3.46 per share, for the ...

Redwood Trust Reports First Quarter 2009 Results - MSN MoneyCentral

Love Funding, a national mortgage-banking firm, today announced that its St. Louis office closed a $4,265,500 refinance loan for Lake Broadway Townhomes, a 58-unit market-rate, multifamily housing complex located in Columbia, Mo. Vice Chairman Harry ...

Harry Cheatham of Love Funding's St. Louis Office Closes $4.2 Million ... - St. Louis Post-Dispatch

CHICAGO--( BUSINESS WIRE )--Fitch Ratings places two classes of GS Mortgage Securities Corp. II's commercial mortgage pass-through certificates series 2001-GLIII on Rating Watch Negative as follows: -- $10.5 million class F-NFC 'AA'; Rating Watch ...

Fitch Places 2 Classes of GS Mortgage Securities 2001-GL III on Watch ... - Businesswire.com

The Company invested $2.0 million during the quarter ended March 31, 2009 to repurchase a total of 109,484 shares of its Series F Cumulative Preferred Stock (or Series F Preferred Stock) at an average cost of $18.27 per share, including commission ...

LTC Announces First Quarter Operating Results - TradingMarkets.com

Comparable funds from operations (Comparable FFO) was a loss of $0.15 per diluted share compared with income of $0.30 per diluted share in the prior year. Quarterly Comparable EBITDA was $22.8 million compared with $55.7 million in the prior year ...

Strategic Hotels & Resorts Reports First Quarter 2009 Results - Earthtimes

The Atlanta-based multifamily real estate investment trust had net income of $400,000 million and earnings of 1 cent a share, compared with net income of $800,000 and earnings of 2 cents a share in the first quarter of 2008. Funds from operations for ...

Post Properties has $400K profit - Atlanta Business Chronicle

Post Properties, Inc. PPS announced today net income available to common shareholders of $0.4 million for the first quarter of 2009, compared to $0.8 million for the first quarter of 2008. On a diluted per share basis, net income available to common ...

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